Qtr Expl & Dev Jly - Sept 01

BHP Billiton Limited
26 October 2001

    BHP Billiton Limited is issuing this announcement to fulfil disclosure
 obligations arising from its secondary listing on the London Stock Exchange.

   The text of this release is identical to that issued by BHP Billiton Plc
                                   earlier.



Date: 26 October 2001

Number: 25/01



                       BHP BILLITON QUARTERLY REPORT ON

                    EXPLORATION AND DEVELOPMENT ACTIVITIES


                          July 2001 - September 2001


This report covers exploration and development activities for the quarter
ended September 30, 2001. Unless otherwise stated, BHP Billiton's interest in
the projects referred to in this report is 100 per cent.


        MINERALS DEVELOPMENT

Aluminium

Mozal 2 Expansion, Mozambique (BHP Billiton 47.11% interest)

Construction work commenced on the 250,000 tonne per annum Mozal 2 aluminium
smelter project in June 2001. At the end of September, piling was 40 per cent
complete and work on the concrete foundations for buildings and equipment has
commenced. Commitments totaling 58 per cent of budget have been made. The
project, estimated cost US$860 million (BHP Billiton share US$405 million), is
within budget and on schedule for initial production towards the end of 2003.
BHP Billiton has a 47.11 per cent share of Mozal and manages the project.



Base Metals

Escondida Phase IV Expansion, Chile (BHP Billiton 57.5% interest) BHP Billiton
and its joint venture partners in the Escondida copper mine in northern Chile
continued development activities for the Escondida Phase IV development
project during the quarter. The Phase IV expansion will increase ore
processing capacity by 85 per cent resulting in an average copper production
of 400,000 tonnes per annum (average total production of 1.2 million tonnes
per year) over the first five years.

The development has an estimated capital cost of US$1,045 million (BHP
Billiton share US$600 million). All major equipment purchases and contracting
activities have been committed. Concrete and structural steel placement in the
concentrator are well advanced and the setting of equipment has commenced in
some areas. Project mechanical completion is on track for September 2002 with
full production expected to be achieved by April 2003.

Tintaya Oxide Project, Peru (BHP Billiton 99.9% interest)

Construction of the Tintaya Oxide project continued during the quarter. The
Oxide project will increase Tintaya production by 38 per cent with a cathode
capacity of 34,000 tonnes per annum. The development has an estimated capital
cost of US$138 million. Bulk earthworks and concrete works are 95 per cent
complete. Mechanical and structural installation works are well advanced, and
piping and electrical installation have also recently started. The project is
currently on schedule and on budget (US$138 million). First cathode production
is expected in early 2002 with full production to be achieved by mid 2002.



Carbon Steel Materials

Blackwater Integration Project, Queensland (BHP Billiton 50% interest) The
project involves the creation of a single mining entity combining the South
Blackwater open cut operations with the Blackwater mine to produce an
estimated 13.5 million tonnes of coking and thermal coal a year. BHP
Billiton's equity in the project changed on 28 June 2001 as a result of the
formation of the BHP Billiton Mitsubishi Alliance (BMA).

On 25 September 2001, the mines became a single entity on an industrial and
operational basis. Commissioning is progressing well on the pre-strip fleet of
300-tonne dump trucks - a key project required to meet sales targets. These
trucks have been commissioned some 17 weeks from date of order. A dragline has
also been relocated on schedule as a complete unit some 35kms from the South
Blackwater lease. A significant number of contracts have been let for the
construction of the new industrial area at the mine site and work is
progressing. The mining operation is on target to meet the project goal of
13.5 million tonnes of saleable coal. Total project capital remains on target
of US$64 million (BHP Billiton share US$32 million).

Escondida Phase IV Expansion, Chile (BHP Billiton 57.5% interest) BHP Billiton
and its joint venture partners in the Escondida copper mine in northern Chile
continued development activities for the Escondida Phase IV development
project during the quarter. The Phase IV expansion will increase ore
processing capacity by 85 per cent resulting in an average copper production
of 400,000 tonnes per annum (average total production of 1.2 million tonnes
per year) over the first five years.

The development has an estimated capital cost of US$1,045 million (BHP
Billiton share US$600 million). All major equipment purchases and contracting
activities have been committed. Concrete and structural steel placement in the
concentrator are well advanced and the setting of equipment has commenced in
some areas. Project mechanical completion is on track for September 2002 with
full production expected to be achieved by April 2003.

Tintaya Oxide Project, Peru (BHP Billiton 99.9% interest)

Construction of the Tintaya Oxide project continued during the quarter. The
Oxide project will increase Tintaya production by 38 per cent with a cathode
capacity of 34,000 tonnes per annum. The development has an estimated capital
cost of US$138 million. Bulk earthworks and concrete works are 95 per cent
complete. Mechanical and structural installation works are well advanced, and
piping and electrical installation have also recently started. The project is
currently on schedule and on budget (US$138 million). First cathode production
is expected in early 2002 with full production to be achieved by mid 2002.



Carbon Steel Materials

Blackwater Integration Project, Queensland (BHP Billiton 50% interest) The
project involves the creation of a single mining entity combining the South
Blackwater open cut operations with the Blackwater mine to produce an
estimated 13.5 million tonnes of coking and thermal coal a year. BHP
Billiton's equity in the project changed on 28 June 2001 as a result of the
formation of the BHP Billiton Mitsubishi Alliance (BMA).

On 25 September 2001, the mines became a single entity on an industrial and
operational basis. Commissioning is progressing well on the pre-strip fleet of
300-tonne dump trucks - a key project required to meet sales targets. These
trucks have been commissioned some 17 weeks from date of order. A dragline has
also been relocated on schedule as a complete unit some 35kms from the South
Blackwater lease. A significant number of contracts have been let for the
construction of the new industrial area at the mine site and work is
progressing. The mining operation is on target to meet the project goal of
13.5 million tonnes of saleable coal. Total project capital remains on target
of US$64 million (BHP Billiton share US$32 million).




Energy Coal

San Juan Underground, New Mexico, USA (BHP Billiton 100% interest) The project
involves the development of an underground longwall mine at the San Juan
thermal coal operations in New Mexico, USA. The mine will replace production
from two of BHP Billiton's three existing surface mines. The project reached
60 per cent completion during the quarter.  Three of the four portal entries
were completed, the surface conveyor system erection was 80 per cent completed
and the ventilation shaft was excavated to 270 feet (54 per cent complete).
Underground mine development reached 47,000 feet (31 per cent complete).
Approval of the prototype mining shields was achieved during September.

Project capital spending is on budget at US$146 million. The completion of
surface facilities is on schedule for March 2002. At present, underground
development mining is approximately six weeks behind schedule.

Mount Arthur North, New South Wales (BHP Billiton 100% interest) The Mount
Arthur North mine will be capable of producing up to 15 million tonnes of raw
thermal coal per annum when full production is achieved in 2006. The Project
is on schedule. Commitments for the quarter ended September 2001 total US$99
million. Capital expenditure for the quarter was US$7 million. The project has
completed its third month of an anticipated 32-month construction period.
Forecast costs to completion remain unchanged at US$411 million.

During September the design has been frozen on the Coal Handling Plant.
Engineering activities continue to focus on evaluating tenders for long
lead-time items, earthworks and concrete designs, HV power reticulation and
documentation for upcoming tender packages.

The Project Consent Agreement was signed on 5 September 2001 and is now
registered with the New South Wales Industrial Relations Commission.

PETROLEUM DEVELOPMENT

Echo Yodel, Australia (BHP Billiton 16.7%, non operated)

The Echo Yodel subsea tie-back project to the Goodwyn Alpha Platform remains
on track with production expected to commence in early 2002. Yodel 4, the
second and final well, was completed in September and hookup to the pipeline
is planned for the end of the year. The production licence has been granted.

Laminaria Phase 2 development, Australia (BHP Billiton 32.6%, non operated)

The project, entailing two new infill subsea wells tied-back to the Northern
Endeavour, is progressing as per schedule with the drill rig contract awarded
in September. The spudding of the first well is planned for January 2002.



Liverpool Bay - Hamilton East Field, UK (BHP Billiton 46.1%, operated)

The Hamilton East single subsea gas well has been successfully drilled, tested
and tied-back to the Hamilton North platform with first gas produced on 17
September 2001.

North West Shelf expansion, Australia (BHP Billiton 16.67%, non operated)

The construction of the fourth liquefaction processing train has commenced and
work on the foundations began in September. Construction of the workforce
accommodation village in Karratha has begun, with the first stage due to be
finished and occupied before the end of 2001. All long lead items have been
committed with further contracts for mechanical erection on-plot and heavy
lift cranage works to be awarded soon. Front end engineering design is
continuing for the 42-inch second trunkline with major tenders for linepipe
and pipelay contracts currently under review.

Ohanet Development, Algeria (BHP Billiton 45%, joint operating organisation
comprising SONATRACH/BHP Billiton)

The Ohanet development consists of the development of four gas/condensate
reservoirs in the Illizi Basin in southern Algeria under a Risk Service
Contract with SONATRACH. Three dimensional seismic data acquisition across all
reservoirs was completed in June 2001 and the data is currently being
processed and utilised in reservoir engineering for the development. The
development drilling program has commenced and facilities engineering is
approaching 80 per cent completion. Most major construction sub-contracts have
been award. First production is scheduled for third quarter of 2003.

ROD Integrated Development, Algeria (BHP Billiton 35.1%, joint operating
entity comprising SONATRACH/BHP Billiton)

The ROD Integrated Development involves the development of six satellite oil
fields in the Berkine Basin in eastern Algeria under a Production Sharing
Contract with SONATRACH. The formal gazettal of the Exploitation Licences for
the first five fields was received in July 2001. In addition, the RAR
discovery was declared commercial in September 2001 and an application for an
Exploitation Licence has been made. All drilling contracts have been awarded
and civil engineering for the drilling campaign is well underway. The first
contract for the long lead engineering items has been awarded and the other is
imminent. It is anticipated that the Engineer-Procure-Construct (EPC) contract
for the production facilities will be awarded in the fourth quarter 2001.
First production is scheduled for 2003.

Typhoon, Gulf of Mexico, USA (BHP Billiton 50%, non operated)

The Typhoon oilfield started production on 31 July. Production from Typhoon is
reported in the BHP Billiton Production report.



MINERALS EXPLORATION

The Exploration Group of BHP Billiton Minerals continued to carry out global
grass-roots exploration for key commodities of interest to the company.

The Junior Alliance Program (third party alliances and joint ventures) has
been greatly enhanced following the merger of BHP and Billiton. This program
emphasises the use of distinctive capabilities and innovative commercial
investments to gain the widest possible exposure to the results of third
party-funded exploration.

The two FALCON(TM) systems are continuing to fly extensive campaigns in Africa
and the Americas.



PETROLEUM EXPLORATION

Exploration and appraisal wells drilled during the quarter or in the process
of drilling as at 30 September 2001.

WELL        LOCATION        BHP Billiton                  STATUS
                            EQUITY
Atlantis-3  Green Canyon    44%, Operator  Encountered hydrocarbon bearing
            Block 743, Gulf - BP           reservoirs. For more information see
            of Mexico                      News Release of 11 October.
Atlantis-3  Green Canyon    44%, Operator  For information see News Release of
ST          Block 743, Gulf - BP           11 October.
            of Mexico
Boris-1     Green Canyon    50% BHP        Well reached total depth and was
            Block 282, Gulf Billiton       sidetracked updip.
            of Mexico       operator
East        VIC/L9, Bass    50%,           Cased and Suspended.
Pilchard-1  Strait,
            Australia       Operator -
                            Esso Australia
                            Resources
Frampton-1  Green Canyon    44% BHP        Plugged & Abandoned.
            872, Gulf of    Billiton
            Mexico          Operator       For more information see News
                                           Release of 11 October.
Gnome-1     Atwater Valley  50% BHP        Drilling ahead.
            Block 18, Gulf  Billiton
            of Mexico       Operator
Ika Marin-1 Tolo Block,     40.12% BHP     Drilling ahead.
            Gabon           Billiton
                            Operator
Kairi-1     Trinidad Block  45% BHP        Plugged & Abandoned. For more
            2(c)            Billiton       information see News Release of 20
                            Operator       August.
Mad-Dog-4   Green Canyon    23.9%,         Plugged back and Sidetracked. For
            Block 782, Gulf Operator - BP  more information see News Release of
            of Mexico                      11 October.
Mad-Dog-4ST Green Canyon    23.9%,         See News Release of 11 October.
            Block 782, Gulf Operator - BP
            of Mexico



Expenditure

Information related to exploration expenditure will be included in the first
quarter BHP Billiton profit report, to be released on 7 November 2001.

MINERALS COMPETENCE AND RESPONSIBILITY

The following statements apply in respect of the information in this report
that relates to any stated Mineral Resources or Ore Reserves.

  * The information is based on and accurately reflects information compiled
    by the person named under each relevant section of the report
  * Each named person is either a Corporate Member or Fellow of The
    Australasian Institute of Mining and Metallurgy or the Australian
    Institute of Geoscientists, or a Recognized Mining Professional under the
    ASX listing rules, and is a full-time employee of a member company of the
    BHP Billiton Group;

Each named person has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he or she is undertaking to qualify as a Competent Person as defined in
the 1999 Edition of the 'Australasian Code for Reporting of Mineral Resources
and Ore Reserves'. Each named person consents to the inclusion in the report
of the matters based on their information in the form and context in which it
appears.

                                     ***

Further news and information can be found on our Internet site:
www.bhpbilliton.com



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